Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Egg-Timer: Political Economy of Environmental Policy Location: D-112 Session Chair: Massimo Tavoni, Politecnico di Milano e EIEE | |
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Global warming, inequality and biodiversity loss 1: Paris 1 University, CES and Paris School of Economics; 2: University of California, Davis Global warming, ecological decline and inequalities are interconnected, yet rarely studied jointly. We investigate how damages to the environment change the social cost of inequalities , and how inequalities influence the social value of ecosystem services. We show that the answer depends on two parameters: inequality aversion, and substitutability between market goods and environmental goods. When both parameters are high, inequality increases the marginal value of the environment. This is not always the case when both parameters are low. We quantify this interaction by building a climate-economy model that includes ecosystem services and features both national and international inequalities. In our main calibration, the presence of national inequality doubles the marginal social cost of damages to the environment, while cross-country inequalities only cause a small increase. Overall, our findings show that the interactions of inequalities and ecosystem services can be quantitatively important for the assessment of conservation, climate, or redistributive policies. | |